The oil price looks optimistic. What are the reasons?
Crude rises in Asia as Trump discloses steady course in Afghanistan
On Tuesday, oil added in Asia because Donald Trump rolled out a strategy for keeping American troops in Afghanistan after 16 years. However, he promised a tougher and also more pragmatic approach to supporting the authorities in Kabul and cooperating with partners such as Pakistan.
In New York, October delivery crude futures grew 0.19% trading at $47.62 a barrel. At the same time in London Brent futures added 0.14% being worth $51.73 a barrel.
The American Petroleum Institute is expected to issue its estimates of crude as well as refined product stocks for the previous week in America to be followed by Wednesday’s news from the Energy Information Administration. By the way, these figures are often seen diverged.
Market participants expected a 3.375 million barrels sag in crude stocks. They also hoped for a 300,000 barrels dip in gasoline inventories as well as a 38,000 barrels build in distillates.
Overnight, oil futures declined because market participants keep losing faith in OPEC’s capability to stem the glut supply amid an upcoming producers gathering to talk about waning compliance with the deal curb output.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!